Dr. Johnson Pandit Asiama
The Governor for the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has raised concerns over the use of foreign currencies for domestic transactions in the country.
Speaking at the Graphic Business Breakfast Meeting held in Accra, the Governor mentioned that the growing trend of dollarisation is a threat to the country’s monetary stability.
He said, “We are still grappling with a deep-rooted culture of dollarisation. Too many businesses continue to price in dollars in real estate, education, and luxury retail despite transacting entirely in Ghana”.
He stressed that the practice is a violation of the money laws and also destroys confidence in the cedi.
“This practice not only violates the legal tender laws but also erodes confidence in the Cedi,” he stated.
He further highlighted concerns over the growing mismatch between forex inflow and domestic reinvestment.
“Even more concerning, is the mixed match between forex inflows and domestic reinvestment. While exports have risen, a significant portion is either held offshore or not channelled back into productive activities at home,” he stated.
The Governor used the opportunity to call on businesses and stakeholders to strictly adhere to the use of the Cedi in all local transactions.
He also urged regulatory authorities to step up enforcement efforts to curb the rising trend of unofficial dollarisation in the economy.
By Florence Asamoah Adom